Buterin, who pioneered the second generation of blockchain tech when he was only 19 years old, believes that while the crypto community is working towards fully viable decentralized systems, the current technological and governance limitations have kept many centralized elements in place.
According to Buterin, no element is more egregious right now than centralized cryptocurrency exchanges, as these groups commonly charge enormous listing fees that can cost more than $15 million (far more than the annual listing fee charged by Nasdaq).
I definitely hope centralized exchanges go burn in hell as much as possible.
While Buterin’s opinion of these exchanges is clear, he acknowledged the difficulties in moving away from their centralized structure. Properly managing user authentication is a major challenge that actively works against the mainstream adoption of decentralized models.
Additionally, he believes that centralized exchanges exist as the only interface between the fiat and cryptocurrency worlds, as the current fiat infrastructure does not support decentralized gateways. Buterin went on to emphasize the potential upside of crypto-to-crypto exchanges that allow investors to directly swap their tokens by simply connecting their wallets.
Buterin also touched on the decentralization efforts of the Ethereum Foundation, stating that it’s always a balancing act between what he wants and what the community might want. However, he recognizes that certain regulatory obligations do require an element of centralization and believes technologies like Plasma chains could provide a viable compromise.
The Ethereum Foundation tries very hard to be a decentralized organization. We try very hard not to have a very hard divide, such as you’re on the inside and you’re on the outside.
More: Vitalik Buterin: “I definitely hope centralized exchanges go burn in hell as much as possible”
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Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.